Canadian gold stocks take a dive

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Price of Canadian gold has taken a tumble as the gold miners have reported bad earnings. Goldcorp Inc., Yamana Gold Inc., and Agnico-Eagle Mines Ltd. Shares were all down 13, 16 and 12 per cent respectively and reported poor results for the third quarter. US gold prices also dropped to US$1,200 an ounce.

Toronto-based gold producer Yamana Inc. had complications in three development projects called Pilar, Ernesto and CI Santa Luz in Brazil. Out of the three projects, Pilar was the only one to go into commercial production.

“Ladies and gentlemen, it is not easy for me to sit here and tell you that we got something wrong, and that things did not go as planned,” CEO Peter Marrone said on a conference call, The Financial Post reports. “But that’s what happened [at those three projects].” Toronto-based miner Agnico-Eagle reported operating costs that were higher than predicted. CJ

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